In a letter to creditors obtained by Business Insider, administrator Deloitte confirmed the business and its assets were sold to Alphatise Australia on June 23 after an expression of interest process was run since March.

Earlier this financial year, Alphatise was running at a $3.2 million loss having generated $278,566 in revenue. Last financial year the company earned $9,211 and posted a loss of $1.07 million.

Paul Pearson, an Alphatise Australia director, approached Deloitte in April with a proposal to recapitalise the company by raising almost $2 million from existing shareholders. But no shareholders participated in the proposal and the recapitalisation was unsuccessful.

Since March only one offer to buy the business as a going concern was received by the administrators. With the absence of any other offers, Deloitte decided to sell Alphatise to Pearson’s Alphatise Australia outfit.

Deloitte is now finalising the company’s liabilities but said it is unsure whether funds will be available for unsecured creditors.

“Shareholders are advised that due to the recapitalisation being unsuccessful and there being insufficient assets (including the receipt of any rebate) to finance all known liabilities of the company, the administrators declare that they have reasonable grounds to believe there is no likelihood that shareholders will receive any further distribution for their shares,” the letter from Deloitte administrator Vaughan Strawbridge stated.

The purchaser assumed control of the company from late June. One investor posted the below comment on Linkedin last week.

Among the company’s initial shareholders, it is understood Atlas Iron non-executive director David Hannon and BRW Young Rich lister and CEO of Mpire Media Zhenya Tsvetnenko invested hundreds of thousands of dollars into the startup.

Documents from the administrator show the largest shareholder was Paul Pearson’s family trust with a 21.7% equity holding in the original Alphatise.

Business Insider has reached out to Pearson and Deloitte for comment and we’ll update if we hear back.